How do I record rental property purchase closing costs?

judyjay

We purchased two rental properties in the past eight months. How do I record the closing cost expenses? I understand that some of the closing costs should be included in the basis but I'm not sure where to track that in Quicken. Thanks in advance for your advise.

Tom Young

Presumably you have separate asset Accounts in Quicken for each property with the stated purchase price of each property making up the bulk of each Account's balance.  Using the HUD-1 you distinguish between "period costs" (expenses) and additions to the properties' bases.  The period costs are posted to suitable Categories but the costs that get added to the properties' basis can be (should be) posted in in the relevant asset Accounts.  Within each asset Account you end up with a suitable "list" of the capitalized costs.